Wrangler Ranch is a western themed summer camp. The ranch is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1 Year 2 Year 3 Year 4 Year 5 $ 385,000 $360,000 $ 295,000 $ 240,000 $ 195,000 What is the payback period? 2.29 years 2.86 years 2.90 years 3.41 years